Chapter 415 – The formulas are worthless?
The statement said by Wu Zhigang had silenced the room. Everybody was staring at Wu Zhigang, but he does not back down.
“Hmph! That’s what you claimed. What if you are unable to fulfill your promise?” Deputy Mayor Li sneered.
“As long as all of you do not interfere with the operations, then it will surely be possible. One year later, Bing City Pharmaceutical Corporation’s profits will reach 100 million RMB! If we do not achieve it, then Tai Hua Trading will donate 10 million RMB to the city!” Wu Zhigang proudly said.
The rest of the leaders were shocked. Where did Tai Hua Trading get this confidence from? These companies’ profits were less than 10 million now. After merging these companies, the profits can reach 100 million RMB? Was this a joke?
But this statement also reflected the wealth of Tai Hua Trading. Last year, Tai Hua Trading had promised to donate 10 school buildings to the city which will be completed in this Summer. They had helped with the City’s lack of funds and also demolished some old and dangerous buildings.
The rest of the leaders felt that this was a good deal. Win or lose, the city will still gain. If the city wins, Tai Hua Trading will donate a sum of money. If the city fails, that means after the merger, the pharmaceutical corporation could really bring in lots of profits to the City.
Zhang Ruiqiang was also surprised. Wu Zhigang dares to make such bold statement, must be the instructions from Feng Yu. But Feng Yu had not told him about this. This was a good thing, and he had no reason to reject.
“Does everyone still have other opinions now?” Zhang Ruiqiang looked at everyone at the meeting, and he stopped his gaze at Deputy Mayor Li. One could never find such attractive deal elsewhere in China. If you are still going to oppose, then there must be a problem with your attitude. Don’t blame me for punishing you!
“Are we going to set up a team for this merger? I want to be part of this team.” Deputy Mayor Li firmly said.
If I discover that something was going on between you and Tai Hua Trading, that will be your last day as the Mayor!
“I will be the leader of this team. Deputy Mayor Li will be the vice leader. Deputy Mayor Liu, you will be the third in charge. The rest of you shall be the team members. The first thing we should do now is to calculate the total value of these companies. As we are going to have investors, I had hired valuation experts from the Province to evaluate the assets. The valuation report should be out within a week. Today’s meeting shall end here. Dismiss!”
Wu Zhigang returned to the company and paged Feng Yu. After a while, Feng Yu returned call, and Wu Zhigang reported what happened at the meeting to Feng Yu. Everything had gone according to as planned and when Wu Zhigang used the killer move ‘donation’ no one else objected to this.
Many people were skeptical about Tai Hua Trading’s claim of increasing the profits to 100 million RMB! but Wu Zhigang had never doubt about this. Manager Feng had never made any losses in all his businesses. Manager Feng’s estimation of the market was always conservative and had never exaggerated the figures.
Manager Feng had said that one year later, the Pharmaceutical Factory’s profits will reach 100 million RMB and he believed that it will surely come true!
The valuation process was swift. In 5 days, it was completed. The 43 companies had a total of 287,640,000 RMB. Some other assets belong to individuals and some other companies. It amounted to 11,270,000 RMB.
Feng Yu applied for leave from his university and returned back to Bing City. Fu Guangzheng had also brought along his team to Bing City. They were more professional than Feng Yu when it comes to the valuation of assets.
Feng Yu felt that he should also form an investment team. He cannot always ask others for help or do everything by himself.
Seems like it was time he must recruit some fresh graduates who were also investment experts from Huaqing University!
Fu Guangzheng’s team were very professional and used several methods to validate the valuation report. Feng Yu was very pleased with their results. There were no problems with the valuation report. Although some of the buildings were valued higher, those were old buildings with historical values. It was not easy to evaluate the value of these buildings. But overall, this report can be used.
Zhang Ruiqiang did not ask his men to play tricks in the report? Feng Yu was not used to this. Did Zhang Ruiqiang change?
The total assets were less than 300 million, and if Feng Yu wanted 49% of the shares, he would need to pay at least 145 million RMB. Fu Guangzheng does not want to invest in this pharmaceutical corporation. He was only here to help Feng Yu.
Fu Guangzheng had asked Feng Yu if he had gotten some unique formulas. But when Feng Yu told him about his formulas, Fu Guangzheng was disappointed. These formulas could fill the gaps in China’s pharmaceutical industry?
You want to earn money with these formulas? If Feng Yu had the formulas of medicines which could cure some rare illness, Fu Guangzheng would surely want to invest. But he was not interested in these health supplements.
Fu Guangzheng was very busy. Feng Yu had most of the work to him. Basically, it was Fu Guangzheng and his team that was managing the business. Just those branch factories were enough to keep him busy. But Fu Guangzheng was still happy with this arrangement. He had lots of authority, and this showed that Feng Yu trusted him a lot. Of course, this was also because the finance department heads were all Feng Yu’s men.
Feng Yu was laughing in his heart when he knows that Fu Guangzheng does not want to invest. Fu Guangzheng would not get a share of the hefty profits.
Feng Yu had asked Fu Guangzheng’s men to help him appraise his medical formulas. He wants to know how much it was worth. The formulas could be used as his capital. He had spent a lot of money to get the professors from Beijing University to develop.
Fu Guangzheng’s men looked at Feng Yu and then at Fu Guangzheng awkwardly.
“Just tell us what you wanted to say. We are here to assist Manager Feng.” Fu Guangzheng looked down at his teacup.
“Manager Feng, we are sorry to say that these few medical formulas are complicated to appraise. These are not for treatments. That’s why the value of each formula…… Why not we write a valuation report that states each formula is worth 100,000 RMB?”
Damn. What did you say? I had spent a few hundred thousand to over 1 million RMB for these formulas. Those professors’ research fees were sky high, and their minimum requests were in millions!
I had spent almost 10 million RMB on these formulas, and you are telling that these are not even worth 1 million in total? From your faces, all of you seem to be taking a huge risk to give a ‘high’ valuation for these formulas!
These were all precious formulas! A bunch of ignorant people! No wonder Fu Guangzheng does not want to invest. They thought that these formulas were worthless!
“All of you think that these formulas are worthless? Let me tell all of you, you are wrong. Write in the report that each of these formulas is worth 1 million, USD!”
All of them looked at Feng Yu in shocked. Are you crazy? You want us to state that these formulas are worth 1 million USD each? Could it be that Feng Yu had some under table deals with Bing City’s leaders?